What is Medicare Wraparound?

Wrap It Around Your Insurance Policy

A Medicare Wraparound is a type of insurance policy which covers what Medicare and related medical insurance does not cover. As its name suggest, Medicare Wraparound is also known as supplemental health insurance because it fills a void left by Medicare.

Example

Usually, Medicare Wraparound policies were very popular in commercial sectors where companies would strive to cover its employees by offering these types of supplemental coverage. For example a group health insurance plan may have a high deductible and lifetime limits therefore making it impossible for patients to get benefits beyond a certain numerical limit. In this instance, a Wraparound policy took care of additional costs because the health insurance plan did not cover those expenses. Similarly, people who are not covered for long term medical care often use Wraparound policy enabling them to acquire benefits beyond 100 days of Medicare coverage.

Types of Medicare Wraparound Policy

The most common types of Wraparound policies are those which are sold to people on Medicare. Because Medicare usually have high deductibles and often provides limited benefits, Wraparound policies are a perfect alternative to fill the gap. There are different types of Wraparound policies and each policy has to meet the stringent requirements of CMS, Centers for Medicare and Medicaid Services.

Once Medicare prescription drug and Medicare advantage were popular types of Wraparound policies, but their attractiveness has declined as more options are now available for Medicare beneficiaries. It should also be noted that Wraparound policy is not any specific kind of policy, but it is just a generic name which is used to describe any supplemental policy of Medicare. Nevertheless, everyone should be well aware of the different types of Wraparound policies, available to them.